Legal & General Property has acquired the freehold interest of No 4 The Square, Stockley Park, near London's Heathrow Airport for £26 mln (EUR 29 mln), representing a net initial yield of 8.76%. The 7,560-m[sup]2[/sup] of Grade A office building was bought on behalf of L&G's Linked Pensions Fund from Ropemaker Properties, the property holding company of BP Pension Fund.
Legal & General Property has acquired the freehold interest of No 4 The Square, Stockley Park, near London's Heathrow Airport for £26 mln (EUR 29 mln), representing a net initial yield of 8.76%. The 7,560-m2 of Grade A office building was bought on behalf of L&G's Linked Pensions Fund from Ropemaker Properties, the property holding company of BP Pension Fund.
Situated within The Square, the building forms part of the most recent phase of development on the park, comprising six buildings, and offers highly specified accommodation. The property is let to Cisco Systems Limited, with a guarantee from the US parent company, Cisco Systems Inc, for a term of 25 years, expiring in September 2024, subject to a tenant's break option in 2014.
The current rent is £2.4 mln per annum, which equates to £318.54 per m2 overall, and it is subject to five yearly upward only rent reviews. Cisco Systems has sublet over 80% of the building to three sub-tenants, Rackspace, Perot Systems and Almirall, with the total passing rent of the sub-tenancies equating to £1.9 mln per annum.
King Sturge advised Ropemaker Properties and Knight Frank represented LGP.
